at the beginning of 2013 p d enterprises had the following balances in its accounts 509088

At the beginning of 2013, P & D Enterprises had the following balances in its accounts:


Cash	$13,800
Inventory	6,000
Land	3,300
Common stock	11,000
Retained earnings	12,100

During 2013, P & D Enterprises experienced the following events:

1.	Purchased inventory costing $12,500 on account from Stone Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $930 were paid in cash.
2.	Returned $600 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost.
3.	Paid the amount due on its account payable to Stone Company within the cash discount period.
4.	Sold inventory that had cost $10,500 for $18,500. The sale was on account under terms 2/10, n/45.
5.	Received merchandise returned from a customer. The merchandise had originally cost $1,850 and had been sold to the customer for $2,400 cash. The customer was paid $2,400 cash for the returned merchandise.
6.	Delivered goods in Event 4 FOB destination. Freight costs of $820 were paid in cash.
7.	Collected the amount due on accounts receivable within the discount period.
8.	Sold the land for $6,100.
9.	Recognized $350 of accrued interest revenue .
10.	Took a physical count indicating that $4,400 of inventory was on hand at the end of the accounting period.

b.	Record the events in general journal format.

Events	General Journal	Debit	Credit
1a.


1b.


2.


3a.


3b.


4a.


4b.


5a.


5b.


6.


7a.


7b.


8.



9.


10.

rev

c.	Post the beginning balances and the events to the T-accounts. (Record the transactions in the given order. Leave no cells blank – be certain to enter “0” wherever required.)

Cash


Bal.




Bal.

Merchandise Inventory


Bal.




Bal.


Bal.

Accounts Receivable





Bal.

Interest Receivable




Bal.

Land


Bal.

Bal.

Accounts Payable






			Bal.

Common Stock


			Bal.

Retained Earnings


			Bal.
cl			cl

			Bal.

Sales Revenue





			Bal.
cl

			Bal.

Cost of Goods Sold





Bal.
			cl

Bal.

Transportation-out




Bal.
			cl

Bal.

Interest Revenue


cl.

			Bal.

Gain on Sale of Land


cl.

			Bal.

: 10_01_2012

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Prepare a multistep income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows (Amounts to be deducted and losses should be indicated with a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Be sure to list the assets in order of their liquidity.)

P & D ENTERPRISES Income Statement
For the Year Ended December 31, 2013
	$



Operating expenses


	$
Nonoperating items



	$

P & D ENTERPRISES Statement of Changes in Stockholders’ Equity For the Year 2013
	$


		$
	$




Total stockholders’ equity		$

P & D ENTERPRISES Balance Sheet As of December 31, 2013
Assets
	$



Total assets		$

Liabilities		$
Stockholders’ equity
	$


Total stockholders’ equity		$

Total liabilities and stockholders’ equity		$

P & D ENTERPRISES Statement of Cash Flows For the Year Ended December 31, 2013
Cash flows from operating activities:
	$



Net cash flow from operating activities		$
Cash flows from investing activities

Cash flows from financing activities




Ending cash balance		$